Globalization And Development – Term Paper Example

College: Globalization and Development Adam Smith’s “Invisible Hand” proposes that supply and demand, the principal marketforces, constitute an invisible hand, which influences appropriate resource allocation to consumption and production. On the other hand, Karl Polanyi’s “Double Movement” focuses on the polarizing nature of the expanding market. Polanyi notes that despite the continuous growth of the market there is a countermovement inhibiting this expansion in explicit directions. Therefore, Rivoli’s “My T-shirt Story”, which focuses on the dual nature of globalization, relates to Polanyis, “Double Movement” and not Smiths theory of market forces. This is principally due to the fact that, the two articles focus on the notion that market forces meet consumers’ demands on one hand, in order to protect the other. For instance, in analyzing market interaction dynamics and the cotton processing stage, Rivoli notes that cotton is taken to China. This is because of low manual labor in America, and abundance of the same in China. As a result, Chinese workers get jobs, albeit at a low wage, while American companies avoid incurring unnecessarily high costs. The other illustration is the final stage, where clothes meant for charity are sold to local dealers in Africa, who then sell the cast-off clothes to locals for profit (Rivoli 345).
Rivoli argues that both proponents and opponents of globalization engage in an unwitting conspiracy. This is because the two factions need each other, since markets’ survival depends on diverse forms of economic reaction. Rivoli provides several critical lessons on globalization and development. For instance, she emphasizes the significance of free markets, in enabling individuals to contribute towards global economic success. This is best illustrated by the provision of jobs to Chinese laborers and African traders, who would otherwise not have a source of livelihood. Rivoli also shows the crucial role played by politics in regulating trade agreements, and at the same time, condemns poor working conditions in the textile industry (Rivoli 346-350).
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Work Cited
Rivoli, Pietra. The travels of a t-shirt in the global economy: an economist examines the markets, power and politics of world trade (2nd edition). Oxford: John Wiley and Sons. 2009. Print.